Co-op stumps up £19m for pig farmers

The Co-op has pledged £19m in support for British pig farmers through a new cost of production-based pricing model to be reviewed monthly.

The price paid to producers will no longer be based on the Standard Pig Price and the market price for pigs, instead it will reflect changes in on-farm costs of production.

The £19m is an additional sum being paid by the retailer to cover the whole cost of production on farm at current prices. No timescale has been given for the period that will be covered by the £19m.

See also: Tesco announces £10m support for pig sector

The amount paid to producers will then fluctuate monthly, based on cost of production estimates.

Co-op accounts for 6% of the grocery market, according to data from retail analyst Kantar.

The supermarket chain, which sells 100% British pork, is calling on other retailers to also source more home-produced pork.

Acknowledging the challenges faced by pig producers, Co-op Food co-managing director Matt Hood said: “Some of the support for the sector is too little, but it’s not too late for supermarkets to do their bit to help more British farmers.

“Switching to UK-produced pork is the strongest commitment retailers can give to UK farmers at a time when the sector is experiencing unprecedented spiralling costs.”

The National Pig Association (NPA) has backed the Co-op’s calls for other retailers to do more.

Rob Mutimer, NPA chairman, said the Co-op has long been a loyal supporter of British pig producers and welcomed this support, which will help its pork suppliers cover the record costs of production they currently face. 

“Most of the big retailers have now acted in some way to inject more money into the supply chain. But while the price increases are very welcome, with wheat having reached £350/t this week, they are still not matching soaring input costs,” said Mr Mutimer.

“The reality is that our beleaguered pig producers remain under huge pressure and, in many cases, are battling just to survive from week to week.

“We still need to see more from some retailers. As our industry fights for survival, we urge all the big supermarket chains to always prioritise British pork where they can.”